Malaysia needs to reform policies to fix low wage issues for young workers
Khazanah Research Institute of Malaysia has said issues related to low wages for young workers and fresh graduates should be addressed and it can be done by bringing reforms in the current policies.
School to work survey (SWTS) report gave a clear picture of a labor market deeply saddled with structural weaknesses.
Lim Lin Lean, the lead author of the SWTS, suggested the government to relook its cheap labor policy.
SWTS data from late 2017 to early 2018 highlights in-depth insights about the labor market. The report pointed out highly underemployment of youth and stagnating wages.
Among the core findings of the report, the significant number of those reporting to receive low pay and working in low-skilled jobs despite having college or even advanced degrees.
Around eighty-five percent of young workers with degrees or tertiary qualification polled work in low-skilled jobs, while another 50 percent in occupations with slightly higher skills prerequisite, highlights the survey.
The SWTS polled up to 27,000 job seekers, students, young workers, and employers. Lim added that the survey should provide policymakers the foundation to formulate the right policies, which until now remain mostly conservative and unable to push Malaysia out of a semi-skilled middle-income economy.
Khazanah Nasional executive director and investments head Datuk Hisham Hamdan believes that the country needs bold policies in order to turn into a blue-chip economy.
“We need to ask ourselves why not become like North Asia. Instead of competing against commodity-based economies why not compete against Singapore or Korea for example, he added."